FIXED INCOME MARKETS
Money Market
Opening system liquidity worsened to ₦131.46 billion short, compared with ₦125.04 billion short, recorded yesterday. As a result, the Open Repo Rate (OPR) increased by 189bps to 20.00%, while the Overnight Rate (O/N) expanded by 197bps to 22.80%.
Outlook: We expect interbank rates remain elevated in the interim.
Treasury Bills
Activity in the treasury bills market traded on a bearish note today, despite some buyside interests noticed on the long-dated papers, particularly August and September (2024) maturities. At the end of today’s session, average mid-rate soared by 26bps to 8.22%, day-on-day.
Outlook: We expect market players to trade cautiously tomorrow, ahead of the NTB auction, where the DMO would offer ₦152.20 billion worth of treasury bills.
FGN Bonds
The local bonds market was sightly active today, with buyside interest settling mostly on the 2053 papers. Bids nudged upward, above auctioned rates. Thus, average yield increased by 6bps to 14.29%, day-on-day.
Outlook: We expect a similar performance tomorrow.
Eurobonds
The Eurobonds market traded mixed across board, as crude oil price touched $92pb. Overall, average yield increased by 10bps to settle at 11.23%.
Outlook: We expect sentiment to be influenced by the US CPI data tomorrow. As of writing time, market expect the US CPI data to print 3.6% y/y in August, from 3.2% y/y in July.
Equities
The Nigerian’s bourse closed on a bearish note, as the NGX ASI lost c.0.80%, to settle at 66,760.20 points, while year-to-date return settled at c.30.26%. Selling interests in DANGSUGAR (-9.96%) and major banking names drove the negative performance today.
The NGX Banking Index depreciated by 2.60%, while the Consumer Goods Index depreciated by 1.72%, respectively. The Industrial Index increased by 0.03% and the Oil and Gas Index closed flat. TRANSCORP led the volume with 87.83 million units, while DANGSUGAR led the value charts with ₦1.37 billion
Outlook: We expect the bearish sentiment to persist tomorrow.
Foreign Exchange
FMDQ’s I & E rate appreciated to $/₦742.10, compared with $/₦773.50 recorded yesterday.
Outlook: We expect rates to decline in the short-term.
Commodities
Oil prices remained elevated today, supported by a tighter supply outlook, and as producer group OPEC said major economies were faring better than expected despite rising interest rates. Brent oil prices appreciated by c.1.85% to $92.32pb, day-on-day, while WTI appreciated by c. 2.22% day-on-day to settle at US$89.21pb. Spot Gold depreciated by c.0.65% day-on-day to close at US$1,934.60 per ounce as of report time.
Outlook: We expect oil prices to remain steady in the interim.
